Electronic identifier payment system and methods

ABSTRACT

A payment service method and system involve a payment service provider, a customer/payor and a consumer provider/payee. The customer/payor enrolls in the service and is provided a unique identifier that enables the customer to conduct transactions with the payment service provider. The customer/payor interfaces with the payment service provider through various forms of communication, and can facilitate payments to the consumer providers/payees through the payment service provider while remaining anonymous.

CROSS-REFERENCES TO RELATED APPLICATIONS

This application is a continuation in part application and claims thebenefit of U.S. application Ser. No. 09/823,697, filed Mar. 31, 2001,the complete disclosure of which is herein incorporated by reference.

BACKGROUND OF THE INVENTION

The present invention relates generally to financial transaction systemsand methodologies, and in particular to methods and systems for makingpayments based on a customer identification.

A wide variety of payment methods are available to consumers of goodsand services. In addition to currency, consumers are often able to usetheir credit in making purchases. A common system for making creditpurchases involves the use of a credit card provided by a credit cardissuer, such as a commercial bank or other financial institution.Non-credit transactions can be handled by debit cards, which utilizefunds already deposited by the consumer for payment purposes.

Many types of payment methodologies are dependent upon customers havingrelationships with financial institutions such as banks, credit unions,etc. However, a substantial percentage of consumers do not use suchconventional financial institutions. These consumers are often referredto as “unbanked” because they do not maintain accounts with suchinstitutions. Unbanked consumers are often inconvenienced in makingfinancial transactions. For example, without bank accounts, theyexperience difficulty and inconvenience in obtaining negotiableinstruments, making purchases on credit, etc.

Recently there have been a number of new products which provide at leastpartial solutions to the problems of the unbanked and other consumers.For example, “prepay” cards allow consumers to pre-purchase variousgoods and services. An example of prepaid cards relates to the use oftelecommunications services, which are available through prepaid“calling cards”. Many consumers prepay their calling cards on a monthlybasis in order to obtain “dial tone” service. As with calling cards,other prepaid cards are also reloadable whereby additional value can beadded to the prepaid cards by consumers allowing consumers to use theircards indefinitely.

Another prior art payment system involves the use of payment serviceproviders making payments on behalf of consumers over the Internetglobal computer network or by negotiable instrument. Such a paymentservice is available from Western Union Commercial Services under itstrademark QUICK COLLECT. This product allows consumers to make paymentsto Western Union agents who then transfer funds either over the Internetglobal computer network or by issuing negotiable instruments to thepayees on behalf of the customers/payors. The customers submit certainidentifying information each time they use this service.

In one aspect, the present invention addresses the need for a paymentservice method and system which allow customers to gain access to theservice simply by providing an identifier. For example, the paymentservice provider can issue the customers cards adapted for swiping toinput their identifiers. A payment service is also needed whichsubstantially instantaneously credits payments to accounts as directedby the customer. For example, customers who purchase prepaid dial tonetelecommunications services often intend to use such servicesimmediately.

In another aspect, there is also a need for a payment service providerto retain customer information to facilitate making a payment by simplyswiping a card to input the customer's ID and designating a paymentamount. Enrolled customers can thus remain in the system's databaseindefinitely for use of the payment service on demand.

BRIEF SUMMARY OF THE INVENTION

In one embodiment, the invention enables a payment service provider tocontract with its clients (consumer providers) to facilitate customersof the consumer providers to make payments and prepayments for goods orservices offered by the consumer provider. The customers may interfacewith the payment service provider through any one of a number ofdifferent interfaces. A unique identifier is assigned to each customerand may comprise any suitable character string or similar uniqueidentifier. For example, customers using the payment service to prepayfor phone time may utilize their telephone numbers as their identifiers.Commercial clients may pre-enroll their customer databases with thepayment service provider. In an embodiment of the present invention, thepayment service provider requests the identifier from each customer whenthe customer is ready to pay for a good or service from the consumerprovider. The identifier is used to access information from a customerdatabase. In one aspect the customer database is a database created bythe consumer provider. The payment service provider, or its agents,receives payment from the customer and produces a record of payment. Thepayment information along with the payment may then be electronicallytransmitted to the consumer provider.

In one embodiment, a method for prepaying for goods and servicesproceeds by having a consumer provider that is to provide the goods orservices transmit a set of identifiers to a payment service provider.Conveniently, these identifiers may be sent to a host computer of thepayment service provider. When a consumer is ready to receive a good orservice, the consumer provider is contacted and the consumer is issuedone of the identifiers. The consumer then contacts the payment serviceprovider, gives the payment service provider the identifier, and makesthe payment. This information may be entered into a terminal so that anelectronic record may be made and transmitted to the host. The paymentinformation may also be sent to the consumer provider and a wiretransfer of the payment made to the bank account of the consumerprovider. In an aspect of the invention, the consumer may contact theconsumer provider and give the identifier to the consumer provider toreceive the good or service. In a different aspect of the invention,this step may occur automatically since payment information may be sentfrom the host to the consumer provider.

In one aspect, when the consumer provides the identifier to the paymentservice provider, it may be used to call up a screen on the terminalwith the consumer's account information. In this aspect, the accountinformation will generally identify any taxes to be paid by the consumerfor the goods or services. Optionally, the host may communicate with adatabase to calculate any applicable taxes. This tax information may besent to the terminal so that taxes may be paid by the consumer. Thepayment and taxes may be sent to the consumer provider to facilitatepayment of taxes by the consumer provider. The payment service providermay also collect a fee for its service.

Such a method is useful in paying for a variety of goods and services.For example, the method may be used for service activation (such asphone service), for adding time to a cell phone, or the like. Whenrelated to phone service, the payment information may be sent from thehost to a phone switch to almost instantaneously activate phone serviceor add time to a phone service.

As another example, the method may be used to pay for items offered forsale over the media, such as the television. For instance, when viewingan item for sale, the consumer may call a phone number to request apurchase. To make payment, the consumer may be given an identifier sothat payment may be made as previously described. Once payment is made,the order is fulfilled and shipped.

In another aspect, the consumer is issued a receipt upon presentment ofthe payment to the payment service provider. The receipt includes theidentifier so that the consumer has a record of the identifier topresent to the consumer provider.

In some cases, the consumer is not required to enroll with the consumerprovider in order to make a payment or receive a service. For example,the consumer provider may issue a set of identifiers to a paymentservice provider. These identifiers are associated with some type ofgood or service, such as phone time, a stored value, or the like. Whenpayment is made, the consumer is issued an appropriate identifier thatis redeemable for the good or service. For instance, the consumer maycontact a phone company to request time be added to a phone account. Asanother example, the identifier may be presented to a retailer or to aweb site to purchase a good. The consumer's stored value account is thendebited by the amount of purchase.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram of a payment service system embodying thepresent invention.

FIG. 2 is a flow chart for payments made in accordance with the methodof the present invention.

FIG. 3 is a flow chart for enrolling customers.

FIG. 4 is a flow chart for implementing payment parameters.

FIG. 5 is a flow chart for a dynamic client/customer interface.

FIG. 6 is a flow chart for providing advertising and coupons on receiptsfor payments.

FIG. 7 is a flow chart for providing an automatic repeat customerdiscount.

FIG. 8 is a flow chart for cross selling services of the client.

FIG. 9 is a flow chart for metering transactions involving accounts.

FIG. 10 is a flow chart for providing rebates to clients.

FIG. 11 is a flow chart for alternative payment methods.

FIG. 12 is a flow chart for additional product support.

FIG. 13 is a flow chart for client-specific enrollment.

FIG. 14 is a schematic diagram of one embodiment of a payment systemaccording to the invention.

FIG. 15 is a flow chart illustrating one method for paying for a good orservice according to the invention.

FIG. 16 is a flow chart illustrating another method for paying for agood or service according to the invention.

FIG. 17 is a flow chart illustrating a service activation methodaccording to the invention.

DETAILED DESCRIPTION OF THE INVENTION

As required, detailed embodiments of the present invention are disclosedherein; however, it is to be understood that the disclosed embodimentsare merely exemplary of the invention, which may be embodied in variousforms. Therefore, specific structural and functional details disclosedherein are not to be interpreted as limiting, but merely as a basis forthe claims and as a representative basis for teaching one skilled in theart to variously employ the present invention in virtually anyappropriately detailed structure.

Referring to the drawings in more detail, the reference numeral 2generally designates a payment system embodying the present invention.As shown in the block diagram FIG. 1, the system 2 includes a paymentservice provider 4 for facilitating payment from a customer/payor 6 toone or more clients/payees 8.

Each customer/payor has a unique ID 10, which can comprise any suitableidentifier. Conventional identifiers such as name, social securitynumber, PIN, etc. are acceptable. Moreover, the system 2 can accommodateanonymous customers/payors 6. Such customers 6 can maintain theiranonymity by creating their own IDs 10. The ID 10 can also comprise thecustomer's telephone number. Thus, the system 2 can be used for payingfor telephone services using only the customer's telephone number foridentification purposes. The customer in this model does not even haveto provide an address or any other personal information. Similaridentification arrangements could be used with other clients 8, i.e.accepting payments on accounts with the customers identified by theirrespective account numbers. The customer 6 interfaces with the paymentservice provider 4 through an interface 12. The interface 12 cancomprise any suitable form or device for communications, includingtelephone (which can incorporate voice recognition (VR), worldwide web(Internet), mail, in-person, a point-of-sale (POS) terminal with a cardreader, e-mail, or any other suitable interface.

The payment service provider 4 can include an agent network 14 which canprovide point-of-sale (POS) contact points system-wide for convenientin-person accessibility by the customers 6. The payment service provider4 maintains customer accounts 16 which can correspond to theclients/payees 8. Each client/payee can have associated therewith acustomer database 18 containing pertinent information regarding thecustomers 6 and their respective accounts 17. The designation ofaccounts, subaccounts, master accounts, etc. can vary fromclient-to-client. Thus, as used herein the terms account, subaccount andsimilar terms can designate either the entire account base of aparticular client 8, or the individual account of a customer(s) 6.

In one embodiment, agent network comprises a host computer that may beaccessed by a variety of remote computers or other devices, such asthose described in connection with interface 12. For example, the hostcomputer may comprise a mainframe computer, a server computer, or thelike. A database may also be associated with the host computer. In thisway, information from customer databases 18 may be transmitted to thehost computer and stored in the database. When a customer contacts agentnetwork 14, it may be through the host computer. Hence, with thisconfiguration, a customer may proceed with a transaction using interface12 which contacts the host computer of agent network 14 to receivecustomer information, such as the unique identifier, and to transmitpayment information back to the host. The host computer may also serveto coordinate a wire transfer of the payment to a bank account of thepayee 8 as well as to transmit payment information to a computer systemof payee 8. Electronic funds transfers may conveniently be made throughan automated clearing house (ACH) system that is contacted by the hostcomputer. ACH transfers are well known within the art and will not bedescribed further.

In the methods illustrated in FIGS. 2–13, it will be appreciated thatthe flow of data between the customer/payor 6, the payment serviceprovider 4, and the clients/payees 8 may occur using the systemdescribed above. FIG. 2 is a payment flow chart depicting a paymentmethod which commences with the enrollment of a new customer/payor at 22followed by an ID 10 that is assigned at 24. An account 17 isestablished with the payment service provider 4 at 26. Optionally a card20 can be issued to the customer 6 at 27. The card 20 can comprise an IDcard, a reloadable/stored value card, a credit card, a debit card, etc.Any suitable card configuration can be utilized. For example, preprintedcards with concealed customer IDs 10 can be inventoried with the agentnetwork 14 for distribution upon enrollment. However, the system 2 canfunction without any cards whatsoever simply by assigning uniquecustomer IDs 10 for purposes of conducting all payment transactions. Apayment is made on the account at 28. The payment is applied at 30 andthe subaccount records are updated at 32. A decision is made at adecision box 34 if another transaction is to be conducted. If so, theprocess returns to the payment application step 30 whereby thecustomer's payment can be applied to another account. If not, theprocess ends.

FIG. 3 shows a method of enrolling the customer base of a client 8including the step of the client creating a customer database at 38. At40 the database is formatted, preferably pursuant to the standardsestablished by the payment service provider 4 to facilitate automationof the payment process. All of the customers 6 in the client's customerdatabase can automatically be enrolled in the payment service at 42. Thecustomers 6 can be notified of the payment service availability at 44,whereupon the new customer can contact the payment service provider 4 at46 and activate the account at 48. The customer ID 10 is assigned at 50,the customer makes a payment on a client's account at 52, and theclient's records are updated at 54.

FIG. 4 shows a methodology for establishing payment parameters. At 58the client designates the products for payment service. The system andmethod can accommodate clients with multiple products by allowingflexibility in establishing the payment parameters for each and byaccommodating different payment directions from customers 6 on thevarious products. The client designates its payment denominations (e.g.$5, $10, $20, etc. increments) at 60 and applies the paymentdenominations to its products at 62. The payment service plan canoptionally be configured to accept exact payments of any amount withoutapplying predetermined payment denominations. Payment service providerfees are established at 64. The fees can reflect the nature of theclients' accounts. For example, payment bands can be input at 66 whereinvarious bands are applicable according to the number of customers.Pricing can also be based on the ranges of principle payment amounts at68. The fees associated with the transactions are input at 70. Thepayment service provider 4 can set a variable fee schedule taking intoaccount factors such as pricing, principle, fee bands, and ranges at 72.

FIG. 5 shows a dynamic client/customer interface methodology wherein thecustomer enrolls with the payment service provider at 76, makes apayment at 78, and is issued a receipt at 80. The customer is assignedan ID at 82. Client messaging to the customer is communicated at 83 andcan include the customer service number. The value of the availablepayment service is designated at 84. A coupon is printed at 85 foreligible customers 6. Customer eligibility is determined at 86 andineligible customers are excluded at 88.

FIG. 6 shows an optional methodology for utilizing the customers'receipts for advertising and coupons. A client promotion is initiated at94. Alternatively, a promotion can be initiated for a non-competitor ofthe client at 96. At 98 the advertising or coupons are printed on thereceipts, which are provided to the customers at 100. The customers 6can redeem the coupons at 102. At 104 the advertisement and couponimpressions are tabulated for each client and the coupon redemptions aretabulated at 106. The client pays the payment service provider at 108.Based on tabulated redemptions, the client can also pay the paymentservice provider at 110. Customer data is collected from the couponredemptions at 111. The customer data can be manipulated in various waysand reported to the client at 112.

FIG. 7 shows a procedure for rewarding repeat customers with discounts.At 116 the interval for the discounted payment service is set and anumber of repeat transactions N is set at 118 in order to qualify for adiscount. A customer payment count (CPC) is set to zero at 120. Acustomer payment is made at 122 and increments the customer paymentcount (CPC+1) at 123. At a decision box 124 the customer payment countis compared to the number of payments required for discount eligibility(CPC=N?). If negative, the procedure returns to the customer paymentstep 122. If affirmative, an immediate discount can be provided on thecurrent payment charge to the customer at 126. A congratulatory messageto the customer is printed at 128, for example on the receipt.

FIG. 8 shows a cross-selling methodology which commences with the stepof a new customer enrollment at 130. A new customer screen is displayedat 132 for purposes of promoting other services of the payment serviceprovider at 134. For example, other related money-transfer services ofthe payment service provider 4 can be promoted to the customer 6 at 136.Internet-based services can be promoted at 138 and direct telephonecontact services can be promoted at 140. The enrollment information canbe captured at 142, and can reflect the services utilized by thecustomer. Still other services can be promoted at 144.

FIG. 9 shows a transaction metering procedure which commences with theclient 8 providing the card configuration at 148. An ID trap occurs at150 whereby a first or other special transaction is identified forspecial handling. An account transaction counter is initiated at 152 anda first transaction is logged at 154. A last transaction is logged at156 and a running log of time elapsed since the last transaction(corresponding to an inactivity period) is maintained at 158. Atdecision box 160 a determination is made if the inactivity period hasexceeded the maximum allowable period. If affirmative, a retire accountstep occurs at 162 and the sub-routine ends. If negative, thesub-routine continues to track transaction recurrences at 164 andmonitors retentions at 166. Future marketing and rebate programs aremetered at 168 and market records are provided to the client at 170based upon the data received in the above steps. The market records canbe used as an adjunct to the client's customer database.

FIG. 10 shows a client rebate routine wherein a number of transactionsrequired for rebate eligibility is set with the client at 174 (NTR). Newcustomers are enrolled at 176, cards are printed at 178 and the clients8 are charged at 180. The number of transactions (NT) is initialized tozero at 182, a transaction occurs at 184 and increments the number oftransactions (NT+1) at 186. At decision box 188 a determination is madeif NT=NTR? If affirmative, the cost of the card is rebated to the clientat 190. If negative, the routine returns to the transaction step for thenext increment.

FIG. 11 shows a methodology for making payments using various options.The customer initiates a payment at 194 and provides his or her ID at196. Various payment options are displayed, and can include negotiableinstruments (e.g. checks, cashier checks, money orders, etc, creditcards, debit cards, etc. A payment method is selected at 200 and isverified at 202 to ensure that good (i.e., collectable) funds areavailable from the customer 6 utilizing the selected payment method. Thepayment is accepted at 204.

An additional product support procedure is shown in FIG. 12 andcommences with the client 8 identifying multiple products to besupported at 208. For example, a telecommunications client might providevarious products such as prepaid dialtone, prepaid cellular, prepaidinternet access, and insurance. All of these products can be provided ona single card. A premium fee can be charged by the payment serviceprovider 4 at 210. Destination codes can be assigned to the client'svarious products and a preferred customer screen created for displayingsame at 212 and 214 respectively. The client's products can be displayedon the preferred customer screen at 216 whereby the customer can choosea product to pay on at 218. At 220 the customer chooses the amount topay on the chosen product. At decision box 222 the customer has theoption of choosing another product to pay on. If affirmative, thepreferred customer screen with the multiple products is displayed again.Otherwise, the sub-routine ends.

FIG. 13 shows a client-specific enrollment methodology, as contrastedwith a generic enrollment procedure commencing with client-specificpayment service advertising which identifies the payment serviceprovider 4 and directs potential customers to its agent network 14. Thepayment service provider agent enrolls a customer on behalf of theclient at 226. The customer is typically either a present or prospectivecustomer for the client±s goods or services and has been directed to thepayment service provider's agent network 14 as a way of paying for same.At 228 the customer and the payment service provider agent select thefeatures and pricing desired by the customer for the client's products.An account number can optionally be assigned on behalf of the client bythe payment service provider agent at 230. The payment service provideris paid by the customer at 232, and in turn pays the agent at 234.

FIG. 14 schematically illustrates one payment system 300 that may beused to facilitate payments made to purchase goods or services. Centralto payment system 300 is a host computer 302 that may have one or moreassociated databases 304. Host 302 facilitates data transfer between oneor more consumer providers 306 and one or more payment service providercomputers 308 or terminals. Host 302 may be any type of computer capableof communicating with other types of communication devices or computers.For example, host 302 may be a mainframe computer, such as thoseavailable from Tandem, a server computer, or the like.

Consumer providers 306 offer goods or services for sale to consumers. Insome cases, consumer providers 306 are incapable of or choose not toaccept payments directly from consumers. For example, a consumer mayhave bad or no credit and may therefore not qualify to receive a good orservice on credit. In other cases, consumer providers may simply find ittoo inconvenient to take cash payments from multiple consumers.

For whatever reason, consumer providers may choose to utilize a paymentsystem to collect payments on their behalf. In such cases, consumerproviders 306 issue unique identifiers which are associated with a goodor service and are electronically transmitted to host 302 where they maybe stored in database 304. These identifiers may be associated withspecific consumers. For example, when requesting a good or service, theconsumer provider may create an account and an identifier is associatedwith the account and issued to the consumer. Alternatively, theidentifiers may be associated with a service, but not to any givenconsumer. For example, the identifiers may be associated with some typeof stored value, such as phone time, dollars and the like. This valuemay be redeemed simply by presenting the identifier to the consumerprovider.

On the payment side, payments may be made to any payment serviceprovider location. Payment may be made in a variety of forms, includingthose described in connection with FIG. 1. The payment information isentered into computer 308 that may comprise any device capable ofcommunicating with host 302. For example, computers may comprise atraditional desktop PC as is known in the art, a point of sale device,and the like.

Computers 308 communicate with host 302 in order to obtain theidentifiers and any associated payment information. For example, whenready to make a payment, a consumer may present his/her identifier whichis entered into computer 308. This information is transmitted to host302 where any relevant information regarding the required payment istransmitted back to computer 308. For instance, computers 308 maypresent a screen with the identifier and the amount of payment requiredto receive a good or service from the consumer provider. In some cases,the consumer may not yet have an identifier and may simply request topurchase a good or service from a consumer provider. For instance, theconsumer may wish to purchase phone time from a certain phone company.In such cases, the consumer makes a request to purchase phone time froma certain provider. This information is entered into computer 308. Thecomputer 308 may then display payment options for that provider asreceived from host 302. For example, payment in increments of $5, $10,$25 and $50 may be accepted. Upon receipt of payment, an identifier isissued to the consumer. Conveniently, a printer 309 may print a receiptwith the identifier.

At the time of payment, other funds may also be collected. For example,the payment service provider may charge and collect a fee for itsservices. As another example, applicable taxes may be calculated andcollected. These taxes may be calculated by host 302 in combination withdatabase 304 that may include tax tables for various locationsthroughout the country. When tendering payment, the consumer may provideinformation on his residential address, such as a zip code. Thisinformation is transmitted to host 302 that performs a look-up indatabase 304 to determine the appropriate tax rate. Host 302 thencomputes the tax and sends the tax information to computer 308. Thepayment amount, taxes, and any service fees may then be displayed to theconsumer on a display screen.

Upon tendering payment, an electronic record of the payment along withthe associated identifier is created and transmitted to host 302 whereit may be stored in database 304. This payment information may also betransmitted to consumer provider 306 so that the good or service may beprovided to the consumer. If the services relate to telecommunications,the payment infonnation may also be sent from host 302 to a switch 310to permit the telecommunications service to be promptly provided. Forexample, if the consumer purchased cell phone time, the consumerprovider's switch would receive the payment information and add time tothe phone, typically before the consumer leaves the location wherepayment is made. Of course, the instructions to the switch could also besent from the consumer provider as well. Receipt of payment informationmay also trigger the providing of other services, such as serviceactivation, shipping of order goods, and the like. In some cases, theservice may not be activated or the order good provided until theconsumer contacts the consumer provider and gives the issued identifier.For example, phone time may be purchased, but not activated until thephone company is contacted and given the identifier. When the good is astored value, this record may be stored in database 304 and transmittedto consumer provider 308. When a good or service is ordered fromprovider 308, the identifier is presented and the stored value accountis debited for the purchase price.

Host 302 may also be used to electronically transfer the payment alongwith any collected taxes to the consumer provider. This may convenientlyoccur by an ACH transfer of funds into a bank account 312 of theconsumer provider. This may occur upon receipt of the paymentinformation by host 302 or by batch mode at specified times. A record ofthe deposit may separately be transmitted to consumer provider 306. Host302 is configured to communicate with a separate ACH system that debitsthe account of the consumer and credits the account of the consumerprovider as is known in the art.

Hence, system 300 provides consumers with an easy way to purchase goodsor services. Further, such goods and services are provided in anefficient manner that provides rapid payment to the consumer provider.

Another feature of system 300 is that consumer provider 306 may also beprovided with access to host 302. In this way, the consumer provider maydo a look-up to see if a payment was posted correctly, to see the statusof a payments, or the like. Further, regular updates may be sent fromconsumer provider 306 to host 302 so that consumer accounts may be keptcurrent.

Referring now to FIG. 15, one method for pre-paying for a good orservice will be described. Initially, a consumer enrolls with a consumerprovider as shown in step 320 to order a good or a service. For example,services that may be ordered include phone service, including phoneminutes, a stored value service, and the like. Goods that may bepurchased include essentially any type of good including retail items,clothing, furniture, sporting goods, cosmetics, toiletries, durablegoods, vehicles, and the like.

When a request is made for a purchase, an electronic account may becreated to record the requested item and the price along with any otherrelevant information. A unique identifier is also included in the recordto uniquely identify the request. This identifier may be any type ofidentifier as previously described, including phone numbers, ordernumbers, credit card numbers, social security numbers and the like. Theconsumer is presented with this number along with instructions as towhere a payment may be made. For example, the consumer provider mayaccess a payment service provider locator to tell the consumer theclosest location where a payment may be made.

In step 322, the record is electronically sent from the consumerprovider to the host computer of the payment service provider. Whenready to make the payment, the consumer goes to one of the locations ofthe payment service provider and gives the unique identifier as shown instep 324. This identifier is entered into a terminal and transmitted tothe host where the record may be accessed and sent back to the terminal.With the record, the terminal may display the payment due along with anyfees. Also, a computed tax may also be displayed.

Upon tendering of payment, this information is entered into the terminalto create an electronic record of the payment as shown in step 326. Thisinformation is then sent to the consumer provider via the host computeras shown in step 328. In the case of a telecommunications service, thisinformation may also be sent to a switch as shown in step 330. Thisinformation is used by the switch to immediately add time to a cellphone account or provide other telecommunications features rendered bythe switch.

As shown in step 332, the payment (along with any taxes) iselectronically wired to a bank account of the consumer provider. Uponreceipt of notification of payment, the consumer provider may fulfillthe order (if not already automatically fulfilled). For example, if agood was purchased, the good may be pulled from inventory and shipped tothe consumer or other recipient. As another example, a stored valueaccount may be credited upon notification of payment.

Referring to FIG. 16, another payment method will be described. Thismethod is particularly useful in prepaying from some type of storedvalue card, without requiring the issuance of a physical card. In thisway, an identification number may be used to “store” a stored value. Forexample, a consumer may purchase a stored value of phone time that isassociated with an identifier. This identifier may then be presented tothe phone company to add calling time to a phone.

The process begins at step 334 where a consumer provider sendsidentifiers to a payment service provider. These may be electronicallytransmitted to a host computer and stored in a database. The identifiersare redeemable by consumers to receive a service. For example, theidentifiers may be redeemed to receive a certain number of minutes on aphone, to purchase goods at retail, over the web, over the phone, or thelike. When ready to pay for such goods or services, the consumercontacts the payment service provider and requests to pay for a certaingood or service as shown in step 336. For example, the consumer mayrequest to purchase a $20 calling card, a $20 retail card, or the like.Using a terminal, the host is contacted to see if such a good or serviceis available. If so, payment is made and payment information is enteredinto the terminal. Also one of the identifiers is associated with thepayment, and a receipt is issued to the consumer with the identifier asshown in step 338. The payment information and associated identifier aresent from the terminal to the host where it may be transmitted to theconsumer provider as shown in step 340.

When ready to receive the service, the consumer simply presents theidentifier to the consumer provider as shown in step 342. For example,the consumer may phone a cell phone company and give the identifier tohave phone time added to a cell phone.

As shown in step 344, the host computer may also electronically send thepayment to a bank account of the consumer provider. This may beaccomplished by an ACH transfer as is known in the art.

The invention may also be used to activate a service, such as phoneservice, utility service or the like. One example of such a process isillustrated in FIG. 17. Initially, a consumer contacts a serviceprovider to request a service as shown in step 346. An account is set upwith the consumer provider and a record is created containing theinformation needed to provide the service. To pay for the service, theconsumer is instructed to contact a payment service provider.

At least some of this account information is sent to the payment serviceprovider as shown in step 348. For example, the account information maybe sent to a host computer and stored in a database. This may includethe amount of payment needed to have the requested service activated.

At step 350, the consumer contacts the payment service provider andrequests that a payment be made to the consumer provider. The accountinformation may be accessed from the host computer by using a terminal.The display screen may display the appropriate account information alongwith the required payment and any service fee. The consumer then makesthe payment, and an identifier is issued to the consumer as shown instep 352. For example, a receipt may be printed with the identifier.Conveniently, the identifier may be assigned to the account by theconsumer provider when the account is created.

At step 354, the payment is electronically sent to a bank account of theconsumer provider. This may be an ACH transfer using the host computer.At step 356, the payment information, along with the identifier, is alsosent to the consumer provider. The consumer provider may then activatethe requested service.

In a modification to the method of FIG. 16, the invention may also beused to issue physical cards having a stored value. These cards may betraditional debit cards having an account number and personalidentification number (PIN). These cards may be accepted anywhere wheretraditional debit cards are used, such as those employing the use of adebit network where ACH transfers are processed.

In such cases, the consumer provider provides the payment serviceprovider with account numbers and PINs. These are associated withphysical cards and the account numbers may be embossed on the cards.When one of these cards is purchased, the stored value is stored by thehost computer. When a purchase is made, the request is sent to a debitsystem that is capable of processing ACH transactions. This debit systemcontacts the host computer to verify the account and provide theappropriate debit to the account. Hence, once the account balancereaches zero, no more purchases may be made without contacting thepayment service provider to reload the account. In this way, a card isonly good for the amount of prepayment. Further, the card may only beused with the PIN, thereby reducing the chances of fraudulent purchases.

The invention may also permit stored value records without issuingphysical cards. In such cases, the payment service provider may generateits own set of identifiers and store them in a database. A consumer maythen make a payment to the payment service provider and be issued one ofthe identifiers. The amount of payment is then stored in the database asa stored value record. The consumer may then use this identifier to payfor goods or services from any merchant that will accept such anidentifier. For example, the identifier may be a routing number that isrecognized buy an ACH transfer system. In such cases, the identifier maybe used to debit the stored value account and to pay the merchant usingan ACH transfer.

It is to be understood that while certain forms of the present inventionhave been illustrated and described herein, it is not to be limited tothe specific forms or arrangements of steps and components described andshown.

1. A payment service method, the method comprising: a payment serviceprovider receiving a set of identifiers from a consumer providerassociated with dial tone service of the consumer provider, the set ofidentifiers forming a database comprising existing and future customeraccounts, the set of identifiers being formatted into a customerdatabase, the customer database being operated by the payment serviceprovider, wherein the dial tone service is configured to provide directand uninterrupted access to telecommunication services; the paymentservice provider receiving a request from a customer of the consumerprovider to pay for the dial tone service while the customer isphysically present at a payment service provider location, wherein therequest includes one of the identifiers and a payment; creating anelectronic record of the payment and the identifier; communicating theelectronic record to a host computer; electronically sending theelectronic record from the host computer to a telecommunication switch;and activating the dial tone service upon receipt of the electronicrecord by the telecommunication switch, wherein communication of theelectronic record to the telecommunication switch is configured toprovide that the dial tone service is activated substantiallycontemporaneously with receipt of the payment by the payment serviceprovider.
 2. A method as in claim 1, further comprising electronicallytransferring the payment to a bank account of the consumer provider. 3.A method as in claim 1, wherein the request is entered into a terminalhaving a processor, and wherein the electronic record is transferredelectronically from the terminal to the host computer.
 4. A method as inclaim 3, wherein the electronic record is further transmitted from thehost computer to the consumer provider.
 5. A method as in claim 3,wherein the set of identifiers are associated with enrollmentinformation obtained from consumers enrolling with the consumerprovider, and further comprising electronically sending enrollmentinformation from the consumer provider to the host computer.
 6. A methodas in claim 5, further comprising periodically receiving updatedenrollment information at the host computer.
 7. A method as in claim 1,wherein at least some part of the identifier is associated with apayment amount as determined by the consumer provider.
 8. The method asrecited in claim 1, wherein the activating the dial tone servicecomprises adding service time to an existing dial tone serviceassociated with the customer.
 9. The method as recited in claim 1,wherein the one of the identifiers comprises at least a phone numberassociated with the customer.
 10. A payment system, comprising: a hostcomputer operated by a payment service provider; a database associatedwith the host computer, the database having a record of a set ofidentifiers that are associated with a dial tone phone service of aconsumer provider, the set of identifiers comprising existing and futurecustomer accounts, the database being operated by the payment serviceprovider; wherein the database includes an electronic record of apayment from a customer that was paid while the customer was physicallypresent at a payment service provider location along with one of theidentifiers of the set of identifiers; and a telecommunication switch incommunication with the host computer and configured to activate the dialtone service for a customer phone number upon receipt of an electronicrecord from the host computer, wherein the electronic record comprisesan identifier from the set of identifiers, the customer phone number andpayment information, and wherein the dial tone service provides fordirect access to phone services from a phone associated with thecustomer phone number.
 11. A system as in claim 10, further comprisingat least one terminal having a processor that is capable ofcommunicating with the host computer, and wherein the terminal isconfigured to receive the identifier, the customer phone number and thepayment information and to transmit the identifier, the customer phonenumber and the payment information to the host computer.
 12. A system asin claim 11, further comprising a printer coupled to the terminal toprint a receipt showing the payment.
 13. The method as recited in claim10, wherein the activation of the activation of the dial tone servicecomprises adding service time to an existing dial tone serviceassociated with the customer telephone number.